Last Updated: 13/09/2022
Tax Accounts and Tax Numbers for Individuals who carry on a trade or business
An individual who is resident and domiciled in Malta is taxable in Malta on his world-wide income, including any income from trade, business, profession or vocation carried out in Malta or abroad. On the other hand, an individual who is resident but not domiciled in Malta is taxable in Malta on any income (including income from trade or business) arising in Malta, and any income (including income from trade and business) arising abroad that is remitted to Malta. To submit a tax return, individuals require a tax number. Foreigners residing in Malta must register as taxpayers and in the case of foreigners they will be issued with a 9-digit tax number. Foreigners already having a 9-digit number will not be registered with a new tax number once they obtain a local identification card (ID) number (which usually includes the letter A). The tax number for Maltese citizens and residents is normally their identification card (ID) number which is issued upon birth.
Registration of Sole-proprietors for VAT purposes
One may apply as a self-employed individual through clicking on the following link and completing the appropriate forms. Depending on the circumstance of the applicant, supporting documents may be required.
Self-employed individuals can be registered under one or more of the following 3 VAT articles:
1. Registration of Self-Employed under Article 10
Anyone undertaking the following activities are required to register under Article 10 of the VAT Act:
• Supply of taxable and / or exempt with credit goods or services in Malta
• Export of goods outside the EU to third countries
• Make an intra-community supply or provide services taking place in other member states Taxpayers registered under Article 10 are eligible to claim input tax for purchases made which are attributable to its supplies.
2. Registration of a Self-Employed under Article 11
Only self-employed individuals that qualify as a small undertaking in terms of the provisions of the Part 1, of the 6th Schedule, of the VAT Act 1998 can register under Article 11. Self-employed individuals cannot charge VAT to their customers, nor can they claim Input VAT on their purchases or expenses even if they are incurred as part of their business activities. Article 11 registered persons are therefore considered as exempt from VAT. Further information on Article 11 registration can be found on the following link.
3. Registration of Self-Employed under Article 12
Self-employed individuals that are required to register under Article 12 are those which are not registered under Article 10 and who make intra-community acquisitions of goods in Malta whereby the value of such acquisition/s exceeds the value of €10,000 in a calendar year. Applicants are also required to register under Article 12 if they purchase services from suppliers established outside of Malta (both EU and non-EU) and whereby the place of taxation of such service is in Malta and where the liability of payment of the tax lies on the customer.
Further information on VAT can be found on the following link.
To register for a VAT number, click on the following link and select the appropriate application form which best suits your circumstances
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